You described any business going south where the incumbent insiders know that and future investors do not. As long as the company sells some sort of real produc

You described any business going south where the incumbent insiders know that and future investors do not. As long as the company sells some sort of real product and earns revenue, even if it's lying about how much or the quality of that product, it's not a Ponzi. What makes a Ponzi is money from investors is the only money at all. There is no actual investment being made, not even bad ones.